The government may reduce import duty on wheat after six years to boost domestic supplies so that it would not have to dip into the stocks much for carrying out market intervention programme.
Wheat prices in Russia are currently ruling $ 284/tonne (around Rs 2357/tonne) against the minimum support price (MSP) of Rs 2275/quintal for the current season. In April, 2019, import duty on wheat was increased to 40% from 30% in April 2019, to boost procurement by agencies.
Current wheat stocks in the central pool are 30.18 MT against the buffer of 27.58 MT for July 1. To curb prices, the government has sold a record 10 MT of wheat in the open market through weekly e-auctions to bulk purchasers and flour millers in FY24.
Retail inflation in wheat rose to 6.02% in April while price rise was 4.74% in March, 2024. The agriculture ministry has projected wheat production in the 2023-24 crop year (July-June) at 112 MT while a private survey had estimated the output at 106 MT.
The government has announced an MSP of Rs 2,275/quintal for the 2024-25 season, which is an increase of Rs 150/quintal over the previous season. In addition, Rajasthan and Madhya Pradesh have announced a bonus of Rs 125/quintal over the MSP.
